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Chapter 28: Q. 2- For Critical Thinking (page 643)

Why do you suppose that a growing number of fast-food restaurant companies are experimenting with automatic cooking equipment?

Short Answer

Expert verified

The robotic scheme in an automatic vehicle restaurant that exactly measures components and kitchen workers in the very same fashion each thing. Changes in eating habits, as well as the fast development of the middle-class population in emerging economies, have aided the global fast food market's expansion.

Step by step solution

01

Introduction.

Due to rapid prohibition and globalization, the growing number of restaurants and hotels is expected to accelerate the growth of the fast food market.

Furthermore, rising consumer health awareness and demand for nutritious and delicious foods are propelling the market forward.

02

Cooking tools that continues to operate instantaneously.

The robot in an automated kitchen is a machine that precisely measures ingredients and cooks the same way every time.

All of your meals could be added and the mixture and makes it taste the same all the moment.

03

Explanation.

Changes in eating habits, along with the rapid growth of the middle-class population in emerging economies, have aided the growth of the global fast food market.

This market grew as disposable income increased and the demand for convenient and affordable food increased.

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Most popular questions from this chapter

Take a look at the two panels of Figure 28-5. Explain why at the points labeled E1, U.S. firms might have an incentive to outsource labor services abroad. In addition, explain why the shifts in the demand curves to the positions denoted D2 occur in each panel.

Understand why a firm's marginal revenue product curve is its labor demand curve.

Refer back to your answers to Problem 28-1 in answering the following questions.

a. What is the maximum wage the firm will be willing to pay if it hires 15 workers?

b. The weekly wage paid by computer printer manufacturers in a perfectly competitive market is $1200. How many workers will the profit-maximizing employer hire?

c. Suppose that there is an increase in the demand for printed digital photos. Explain the likely effects on marginal revenue product, marginal factor cost, and the number of workers hired by the firm?

The following table depicts the product market and labor market a digital device manufacturer faces.

a. Calculate the firm's marginal product, total revenue, and marginal revenue product at each input level above 10units.

b. The firm competes in a perfectly competitive labor market, and the market wage it faces is $100per worker per day. How many workers will the profit-maximizing employer hire?

The following table depicts the output of a firm that manufactures computer printers. The printers sell for $100each.

Labor Input
(workers per week)
Total Output
(printers per week)
10 200
11 218
12 234
13 248
14 260
15 270
16 278

Calculate the marginal product and marginal revenue product at each input level above 10 units.

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